If you are new to Adsense you may have heard the term "Adsense Arbitrage".

This article will give you a brief overview of what the "Adsense Arbitrage" strategy is.

In a nutshell Adsense Arbitrage is a strategy that is used to exploit the price gap between what a person pays for clicks on their advertisements and what they get paid per click if their visitors click on their Adsense Advertisements.

On the surface Adsense Arbitrage looks like a strategy that could work. In fact there are many people around that are making money from this strategy, but Adsense Arbitrage is not as easy is it looks.

So how does the Adsense Arbitrage Strategy work:

1. You need to find out what your customers are interested in.

2. Search for keywords that your customers are using to search for information. These keywords need to be as cheap as possible.

3. You will want to use other search engines to advertise on such as MSN, Yahoo, and Miva. This will help you to reduce the average cost per click.

4. You want to look for related keywords that will pay you a higher return.

5. Now work out what your break even click through rate will be for your Adsense Arbitrage campaign.

6. Create a google Adwords campaign and disable the content providers and google search facilities until you have optimized it.

6. Write an Adwords ad that targets your keyword. You want to employ good Adword techniques to make your ad copy is relevant to the keyword and reduce your cost per click.

7. Set up your content website relating to the information your customer wants and make sure your content is relevant to the keyword you are targeting..

8. Make sure each article targets a more expensive keyword, but it needs to be related to what the visitors is looking for.

10. Remember the more ads you have on your page the lower paying keyword ads will be displayed. This will cost you profits. Where Adsense arbitrage is concerned less Ads can mean more profit.

9. Optimize your page for your Adsense Ads.

10. Monitor your Adsense Arbitrage results. Run for 30 clicks, optimize your ads, run for another 30 clicks, optimize again, run for another 30 clicks and check your profitability. Keep on doing this until you are happy with the profitability of your Adsense Arbitrage campaign.

11. Expand your Adsense Arbitrage campaign one in profit - Advertise on other networks.

But, before you race off and put Adsense Arbitrage to work I must warn you that this strategy is extremely risky, and if you don't know your numbers, you may loose your shirt!

Also remember that you need to have enough money to pay the cost of advertising as you will not get paid your Adsense Arbitrage earnings for 23 days after your advertising bill is due.

Remember start small, check for profitability, optimize the Adsense Arbitrage campaign and then scale it up.

I'm sure that if Adsense Arbitrage is done carefully and you know your numbers it will work, but this is not a set and forget strategy. Your Adsense Arbitrage campaign needs to be monitored constantly and you must know how your conversions are going.